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The purpose of this newsletter is to alert UK business to what UKTI sees as the main headlines in the Pacific Rim, South East Asia & Hong Kong. It is meant to be no more than a snapshot. To go to a chapter – Click on heading, press `Ctrl’, then left click. Feedback, comments and contributions to the UKTI strategy are always welcomed. Further information on any of these subjects is also available. Useful URL’s/Available Documents & Ask Mike Vietnam PM Visited the UK Taiwan – Update on administration; Trade Talks Indonesia – Increase in UK exports; Business environment Korea – Privatisation plans; EU Korea FTA; KBBC welcome the Korean Ambassador Singapore – HRH Duke of York’s visit; Singapore British Business Council Plenary; Forthcoming Visits; Financial Centre Ranking Philippines – Financial Services activity Thailand – Sister Cities; Student visit Vietnam – Visit by HRH Duke of York, JETCO Malaysia – Political/Economic overview; Upcoming Ministerial Visits & UKTI activity Hong Kong & Macao – Joint services offered by UKTI HK & Guangzhou 
TaiwanPresident Ma has now been in office for more than 100 days. In this time we have seen noticeable improvement in cross straits relations including the introduction of direct flights and the lifting of limit on investment in China by Taiwanese listed companies. With Taiwan being by far the largest investor in China, the tag line that this market is a springboard to China, as well as being a dynamic market in its own right, has never been more true. Business opportunities in a wide range of sectors are being grasped by UK business, such as in the rail, education and skills, science and technology, healthcare and creative industries sectors. Government to Government trade talks are scheduled for November 2008 during which the UK will attempt to work with Taiwan to remove the few market access barriers that remain in this liberal market.
IndonesiaA year on year increase in UK exports to Indonesia of 35% suggests that UK business is putting behind them the negative perceptions of doing business in SE Asia’s largest economy and realising that real business can be done. Sectors such as oil & gas, energy, construction and environmental services to name a few are showing real potential for UK business. Demonstrating that many markets around the world are striving to improve their business environment, International Financial Corporation’s (IFC) annual survey, ranking 181 countries based on the ease of operating in a market, saw Indonesia improve in relation to speed, cost and simplicity of process yet their ranking dropped two places to 129th. Indonesia, as with other Asian markets, is becoming more business friendly and continues to grow rapidly.
KoreaNudging forward with its liberal trade agenda, the Korean Government has announced plans to privatise and reform 41 state-owned firms. However, sectors including electricity, gas, water and health insurance were excluded from the reform plan to allay concerns related to possible price rises. Separately, according to an additional press release published on 13 August, the government said that it would strictly impose an ownership ceiling on stakes when foreign investors or conglomerates acquire shares in state-owned firms. However, the Financial Services Commission chairman said that they would allow (or encourage) foreign investors to invest in the sale of state-owned financial institutions. The Government is considering whether privatisations will be successful without the participation of foreign investors and large domestic firms On the ongoing EU Korea Free Trade Agreement Negotiations both sides continue to say that they believe a deal can be done this year. Chief negotiators met in Seoul on 27-29 August to discuss outstanding issues including tariffs and NTBs (Non-tariffs barriers). A Ministerial meeting is scheduled for October. Following this we should know whether the political will has resolved outstanding issues paving the way for concluding negotiations later in the year. The e.bulletin hopes to report on this in the October issue. Sir David Wright, Chair of the Korean British Business Council, hosted a welcome for the new Korean Ambassador, H.E. Chung Yung-Woo. This was also an opportunity for businessmen round the table to discuss their interests and issues in the market.
SingaporeHis Royal Highness, the Duke of York, made his fourth visit to Singapore as the UK's Special Representative on Trade and Investment in September. His visit coincided with the annual meeting of the Singapore-British Business Council (SBBC). His programme focused on four sectors: biomedical and healthcare, financial services, maritime, and energy. The British Chamber of Commerce hosted a roundtable lunch with business experts from the energy sector. They were upbeat. Singapore is the world's third largest oil refining hub, the third largest oil trading centre and builds 70% of new-build offshore jack up rigs. Major new projects are underway for construction of petrochemical plants and underground storage facilities. December sees the major regional conference Off-Shore South East Asia taking place in Singapore.
PhilippinesThe previously owned Dutch bank ABN AMRO was rebranded as The Royal Bank of Scotland and joins SCB, HSBC and Pru Life in representing the UK's financial services industry in the Philippines. RBS will focus here solely on corporate activity with about 45 staff operating from one branch. In terms of income generated (mostly through take-overs, mergers acquisitions etc) they are the third largest bank in the Philippines. Highlights for October include a visit by the Minister for Trade and Investment focusing on promoting the bilateral relationship and improving market access. Thailand
Despite the issues on the political front in Thailand it’s business as usual with Thai exports to the UK having increased by more than £20 million per month (15% increase) during the first half of the year and, from the UK’s perspective, Thailand has now effectively moved from a £50 to a £60 million monthly export market for UK plc (23.4% increase). Governor of Bangkok, Khun Apirak Kosayodhin, with British Ambassador Quinton Quayle, at opening ceremony of Sister Cities. Sister Cities Joins ForcesThe Embassy and the British Council participated in the recently-held “Sister Cities Week” at the Bangkok Art & Culture Centre. The Fair aimed to promote art, culture, investment and tourism of the participating cities and countries. The Fair was organised by the Bangkok Metropolitan Administration (BMA) and was officially opened by Khun Apirak Kosayodhin, Governor of Bangkok. The Embassy and the BMA have been working together to establish closer ties between Bangkok and cities in the UK, including London and Liverpool. MBA Students Call on EmbassyThe commercial section of the Embassy recently hosted a group of MBA students from the Cass Business School in London, one of the UK’s top business schools. The students were in Bangkok as part of their course which studies the economic growth and investment opportunities in South East Asia.
Vietnam
The Duke of York visited Vietnam from 8-10 September, the highlight of which was the award of local incorporation licences to HSBC and Standard Chartered Bank .The two UK banks will now be able to build on their already strong position in the market by opening more branches and introducing more products ahead of their competitors who have yet to receive their licences. Encouragement to issue the banking licences was first raised by UK Trade and Investment’s Chief Executive, Andrew Cahn, at the inaugural Government to Government Joint Economic Trade Committee (JETCO) meeting held in September 2007. This, as well as progress on other issues, shows that the UK Vietnam JETCO delivers results for UK business. The 2nd JETCO will be in London on 2 December. Recipients of the e.bulletin are invited to get in touch with Valerie.Haines@ukti.gsi.gov.uk to discuss how the JETCO can improve business performance in Vietnam.
Hong KongE.bulletin readers may wish to note that that Hong Kong and Guangzhou UKTI teams have joined up to offer a Pearl River Delta Overseas market Introduction Services (PRD OMIS) and to assist missions covering PRD, especially those with potential to cover the unmet demand for technology and innovation around environmental solutions in the region. These services will be of interest to those considering HK as a launch pad for China, particularly for companies nervous about China’s record on IPR enforcement. MalaysiaMalaysia Politics/Economy Following Elections in March, political uncertainty continues as the Prime Minister faces a leadership challenge from within his own party as well as from the opposition coalition. Against this background the Malaysian Government announced a surprisingly generous budget on 29 August 2008. This follows strong GDP growth of 6.7% for the first six months of 2008, although the annual GDP forecasts remain 5.5% for 2008 and 5.4% in 2009. Malaysia's trade surplus jumped 54% (year to date) to £10.7 billion for the same period was exports grew 15.5% and imports by 8.3%. UK companies are winning increased business as a result with UK exports to Malaysia up 20.7% between January and June 2008 compared with the same period in 2007. UKTI Activity & Upcoming Ministerial Visits The UK Trade and Investment Team in KL hosted UKTI's ASEAN Regional Conference in mid September and as a result are hoping to offer ASEAN wide co-ordinated services to UK companies in the future. They hope to announce progress soon. Highlights for October include visits by the Minister for Trade and Investment and Stewart Stevenson, Scottish Minister for Transport, Infrastructure and Climate Change. The latter is participating in the 14th Routes event in KL with the tag line that "The World is Coming to KL". An extremely busy and broad range of UKTI events will also be undertaken covering aerospace, biotechnology, education and training, financial services, engineering and science and technology. For further information please e-mail Eamonn Staunton, First Secretary for Trade & Investment at Eamonn.Staunton@fco.gov.uk or call him on +603 2170 2232. General items of Interest:Useful URLs/Available Documents & Ask Mike UKTI’s website – includes trade opportunities, exhibitions, recent successes and trade briefs, by market. https://www.uktradeinvest.gov.uk/ TBBC website – 10th plenary page - http://www.tbbc.org.tw/html_e/e_tenthmeeting/ Asia House for cultural & business events for the Asian countries: www.asiahouse.org Chart indicating Trade figures for Jan-July, including % change on the same period in 07.
Email mike.qureshi@uktradeinvest.gov.uk with your request or questions about UK Trade & Investment activity. Your suggestions for content or themes to appear in the next edition are welcomed. Email mike.qureshi@uktradeinvest.gov.uk |
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September saw Somchai Wongsawat brother-in-law to former Prime Minister Thaksin become the new Prime Minister of Thailand.
